North American Grain/Oilseed Review: Canola lower, wheat moves up

Glacier FarmMedia | MarketsFarm – The ICE Futures canola market declined on Tuesday despite positive sentiment in comparable oils.

Chicago soyoil, European rapeseed and Malaysian palm oil strengthened during the day. Crude oil prices were higher on signs of a tighter market.

One analyst said if the March soyoil contract surpasses 41 United States cents per pound, it could trigger a rally for oilseeds. However, the trade is waiting on Friday’s supply/demand estimates from the U.S. Department of Agriculture.

At mid-afternoon, the Canadian dollar was steady compared to Monday’s close. Prime Minister Justin Trudeau announced his resignation on Monday with his successor to be determined in the coming weeks.

There were 35,712 canola contracts traded on Tuesday, which compares with Monday when 35,505 contracts changed hands. Spreading accounted for 12,950 of the contracts traded.

Declining crop conditions for United States winter WHEAT raised futures at the Chicago Board of Trade on Tuesday.

Kansas winter wheat was rated at 47 per cent good to excellent according to the state’s report on Monday, down nine points from last month, but up four points from the same time last year. Oklahoma’s wheat crop went down three points at 45 per cent.

Drew Lerner, president of World Weather Inc., expects colder-than-normal temperatures for the rest of January in the Canadian Prairies and southern parts of the U.S.

The U.S. Census reported wheat exports in November at 1.417 million tonnes, a four-year high for the month.

Since July, wheat exports from the European Union totaled 11.16 million tonnes as of Jan. 5, down 34 per cent from one year ago.

There was little movement in the March CORN contract on Tuesday, failing to reach US$4.60 per bushel.

The USDA reported the sale of 110,000 tonnes of corn to Colombia later in the 2024-25 marketing year.

The U.S. Census said 4.704 million tonnes of corn were shipped in November, a six-year high for the month.

Brazil’s trade ministry reported December corn exports at 4.266 million tonnes, down nearly 30 per cent from December 2023.

Crop consultant Dr. Michael Cordonnier left his South American corn production estimates unchanged at 125 million tonnes for Brazil and 50 million for Argentina.

The March SOYBEAN contract hit its lowest price since Boxing Day on Tuesday, but later recovered for a minimal loss.

U.S. soybean shipments in November totaled 9.876 million tonnes, a three-year high for that month. Soymeal exports were a record 1.55 million tonnes and soyoil shipments of 58,510 tonnes were the largest since April 2022.

While hot dry conditions have adversely affected Brazil’s soybean crop over the past two weeks, rains are expected for the country’s southern regions next week with Argentina also to see some rain during that time.

December soybean exports from Brazil were reported at 2.004 million tonnes, down 47.7 per cent from December 2023.

Cordonnier left his South American soybean production estimates unchanged at 171 million tonnes for Brazil and 53 million for Argentina.